Hauled energy start up will join Shell’s Studio-X accelerator

A company which aims to store energy by hauling weight from deep underground has won the backing of Shell’s Studio-X and a US investment fund.

Long duration energy storage is seen as a key plank in the race to net zero.

Energy storage technology developer Economical Energy has been selected to join the Shell-backed accelerator program Studio-X and has also welcomed a new investor on to its books.

Adelaide-based Economical Energy is developing its Vertically Integrated Potential Energy Reservoir (VIPER), which stores energy by hauling weight.

The long-duration energy storage solution foresees using a bucket elevator system to haul dirt or pellets from an underground location to the surface, using excess renewable energy.

When the energy is later needed, the buckets are then reversed, with gravity pulling them to the underground storage site, generating electricity via a turbine as they travel.

The company received investment from the EnergyLab Climate Solutions Accelerator in 2022, and on Monday announced Texas-based ATP Fund had also come on board as an investor.

Studio-X, backed by energy major Shell, is a global network of scientists, entrepreneurs and start ups which work together on net zero solutions.

Economical Energy managing director Matthew Forrest said their new partners had demonstrated deep knowledge of the field they were working in.

“The level of technical due diligence from Studio X and ATP Fund was by far the most sophisticated we have encountered,’’ Mr Forrest said.

“Their understanding of the complexities of the underground environment were particularly relevant.

“I feel that their decision to invest is a strong vote of confidence in us and our VIPER technology.”

Studio X director Max Gray welcomed Economical Energy as a participant in its third cohort.

“Their innovative solution to Long Duration Energy Storage (LDES) will play a key role in meeting the future energy supply and demand equation, as well as adding stability to power grid infrastructure in times of energy instability,’’ Mr Gray said.

“The next decades will need abundant LDES solutions and Economical Energy’s technology is poised to play a key role in that supply.”

Shell is one of the dominant players in Australia’s booming ­energy sector, operating the QCLNG export plant in Queensland, the Prelude floating LNG project off northern Australia along with stakes in Western Australia’s North West Shelf and Gorgon ventures and Arrow, its Queensland gas business.

The company has previously paid $729m to scoop up Meridian’s highly prized retail business, Powershop Australia. It then bought a 49 per cent stake in WestWind Energy Development, handing the company its first exposure to wind power in Australia along with a 3 gigawatt project pipeline across Victoria, NSW and Queensland. It also owns ERM Power, co-founded by Trevor St Baker.

Originally published as Hauled energy start up will join Shell’s Studio-X accelerator